The music industry faces a brewing storm as Universal Music Group (UMG) and TikTok lock horns over the renewal of a licensing agreement. In a letter detailing concerns, UMG raises issues such as inadequate artist compensation, the impact of AI on royalties, and online safety. The repercussions of UMG pulling its music library are felt by disappointed fans and scrambling artists.
In a letter dated January 30, 2024, Universal Music expressed apprehensions about its expiring licensing agreement with TikTok. The missive pointed out problems like insufficient compensation for artists, the adverse effects of AI on human artists, and a lack of online safety measures.
UMG criticized TikTok for proposing a compensation rate significantly lower than other platforms. The letter also accused TikTok of allowing an influx of AI-generated recordings, affecting the royalty pool for human artists, and raised concerns about content infringement, adjacency issues, hate speech, and harassment.
While artists appreciate TikTok's ability to promote their music, they are also concerned about potential impacts on their careers. TikTok heavily relies on licensed music, particularly from Universal, to engage and retain users.
The impasse puts both Universal and TikTok at risk, with potential consequences for artist promotion and the platform's user experience. Previous deals with other labels, like Warner Music, did not face similar challenges, indicating unique complexities in negotiations between Universal and TikTok.
UMG's TikTok "time out" also impacts publishing clients, affecting artists such as Sophie Ellis Bextor (whose song "Murder on the Dance Floor" went viral on TikTok 22 years after its release, following its feature in the movie "Saltburn"), Harry Styles, Bicep, Rina Sawayama, and Fred Again..., whose hits have disappeared from TikTok.
A resolution is critical for the music industry, as the absence of Universal's vast catalog on TikTok could have long-term damaging effects for all involved, straining relationships with affected labels and stakeholders.
TikTok’s Response
TikTok's influence on global music consumption is indisputable. Songs, like Jain's "Makeba," published long ago, can suddenly become mega-hits. TikTok helped elevate Tate McRae's 'Exes' and 'Greedy' to her first number one song. Many more chart-toppers such as Ice Spice’s “Munch (Feelin’ U)” are attributed to TikTok's viral video trends.
On Tuesday, January 30, 2024, TikTok responded to Universal Music Group's decision with disappointment, accusing the label of prioritizing greed over the interests of artists and songwriters.
TikTok dismissed Universal's narrative as false, emphasizing successful 'artist-first' agreements with all other labels and publishers. The statement suggests that Universal's actions are not aligned with the best interests of artists, songwriters, and fans, highlighting TikTok's role as a powerful, free promotional and discovery tool for talent.
Fan Reactions
Universal Music Group's removal of Taylor Swift's music and songs from other major artists elicited shock and disappointment from fans on TikTok. Some humorously suggested Swift create a "TikTok Version" of her albums.
Musicians like Euan Blackman and Talia Sporkin shared their versions, while influencers joined the trend with comical cover videos. Independent artists seized the opportunity to promote their original work in the absence of UMG's big names on TikTok.
UMG vs TikTok: Can this deadlock be resolved?
Universal Music Group's TikTok withdrawal and its issued "time-out" mark a crucial moment in the music business, raising questions about the future of licensing agreements and the delicate balance between artists, platforms, and industry giants. Can this deadlock be resolved, or will it redefine the landscape of music industry partnerships? The outcome will undoubtedly shape the future dynamics of licensing agreements and collaborations between artists and digital platforms.